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Trump Might Propose a Mileage Tax to Fund Infrastructure Projects

Trump Might Propose a Mileage Tax to Fund Infrastructure Projects

FORTUNE.com
By KIRSTEN KOROSEC
February 21, 2018

The Trump Administration highlighted Oregon’s mileage tax initiative as an example of the kinds of fees that could be used to pay for improving roads, highways, and other public infrastructure—a signal that the president endorses an idea that many fellow Republicans oppose.

The annual Economic Report of the President released Wednesday suggests lawmakers consider four actions to speed up and pay for infrastructure improvements throughout the U.S. The report follows Trump’s infrastructure plan unveiled Feb. 12 that calls for investing $200 billion in federal funds in infrastructure projects. Trump says the plan would create $1.5 trillion in investments over the next decade. The federal government would only invest a maximum of 20% in these projects, leaving it to the states to find other sources of revenue.

The economic report recommends streamlining regulatory hurdles, pursuing public-private partnerships, and improving project selection through competitive grant programs. But the interesting action item is the seeming endorsement for user charges. The report singles out Oregon as a pioneer in transportation funding, noting it was the first state to levy an excise tax on gasoline in 1919... FULL ARTICLE

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